BENTLEY SYSTEMS INC-CLASS B (BSY) Stock Fundamental Analysis
USA - NASDAQ:BSY - US08265T2087 - Common Stock
50.29 USD
-0.42 (-0.83%)
50.29 USD
0 (0%)
Taking everything into account, BSY scores 5 out of 10 in our fundamental rating. BSY was compared to 282 industry peers in the Software industry. While BSY has a great profitability rating, there are quite some concerns on its financial health. BSY is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
BSY had positive earnings in the past year.
In the past year BSY had a positive cash flow from operations.
Each year in the past 5 years BSY has been profitable.
BSY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BSY has a Return On Assets of 7.43%. This is amongst the best in the industry. BSY outperforms 80.14% of its industry peers.
Looking at the Return On Equity, with a value of 21.88%, BSY belongs to the top of the industry, outperforming 87.59% of the companies in the same industry.
With an excellent Return On Invested Capital value of 10.54%, BSY belongs to the best of the industry, outperforming 86.52% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BSY is below the industry average of 11.88%.
The last Return On Invested Capital (10.54%) for BSY is above the 3 year average (8.00%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.43% | ||
| ROE | 21.88% | ||
| ROIC | 10.54% |
ROA(3y)7.42%
ROA(5y)7.4%
ROE(3y)30.01%
ROE(5y)29.96%
ROIC(3y)8%
ROIC(5y)10.54%
1.3 Margins
The Profit Margin of BSY (17.91%) is better than 81.91% of its industry peers.
In the last couple of years the Profit Margin of BSY has grown nicely.
BSY's Operating Margin of 23.82% is amongst the best of the industry. BSY outperforms 89.36% of its industry peers.
BSY's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 81.18%, BSY belongs to the top of the industry, outperforming 84.75% of the companies in the same industry.
BSY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.82% | ||
| PM (TTM) | 17.91% | ||
| GM | 81.18% |
OM growth 3Y5.52%
OM growth 5Y3.69%
PM growth 3Y21.55%
PM growth 5Y4.39%
GM growth 3Y1.43%
GM growth 5Y0.13%
2. Health
2.1 Basic Checks
BSY has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
BSY has more shares outstanding than it did 1 year ago.
BSY has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, BSY has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.63 indicates that BSY is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.63, BSY is in the better half of the industry, outperforming 67.02% of the companies in the same industry.
BSY has a debt to FCF ratio of 2.87. This is a good value and a sign of high solvency as BSY would need 2.87 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.87, BSY is in the better half of the industry, outperforming 64.18% of the companies in the same industry.
BSY has a Debt/Equity ratio of 1.07. This is a high value indicating a heavy dependency on external financing.
BSY has a Debt to Equity ratio of 1.07. This is in the lower half of the industry: BSY underperforms 75.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 2.87 | ||
| Altman-Z | 4.63 |
ROIC/WACC0.97
WACC10.88%
2.3 Liquidity
A Current Ratio of 0.51 indicates that BSY may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.51, BSY is doing worse than 89.72% of the companies in the same industry.
A Quick Ratio of 0.51 indicates that BSY may have some problems paying its short term obligations.
The Quick ratio of BSY (0.51) is worse than 89.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.51 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.69% over the past year.
BSY shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.41% yearly.
The Revenue has grown by 10.45% in the past year. This is quite good.
Measured over the past years, BSY shows a quite strong growth in Revenue. The Revenue has been growing by 12.93% on average per year.
EPS 1Y (TTM)7.69%
EPS 3Y8.4%
EPS 5Y12.41%
EPS Q2Q%3.23%
Revenue 1Y (TTM)10.45%
Revenue growth 3Y11.93%
Revenue growth 5Y12.93%
Sales Q2Q%10.22%
3.2 Future
The Earnings Per Share is expected to grow by 14.99% on average over the next years. This is quite good.
Based on estimates for the next years, BSY will show a quite strong growth in Revenue. The Revenue will grow by 9.16% on average per year.
EPS Next Y13.74%
EPS Next 2Y12.77%
EPS Next 3Y14.01%
EPS Next 5Y14.99%
Revenue Next Year10.02%
Revenue Next 2Y10.2%
Revenue Next 3Y10.29%
Revenue Next 5Y9.16%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 44.90 indicates a quite expensive valuation of BSY.
The rest of the industry has a similar Price/Earnings ratio as BSY.
BSY's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.31.
With a Price/Forward Earnings ratio of 36.96, BSY can be considered very expensive at the moment.
BSY's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.85. BSY is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.9 | ||
| Fwd PE | 36.96 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BSY is valued a bit cheaper than the industry average as 67.73% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, BSY is valued a bit cheaper than 68.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.2 | ||
| EV/EBITDA | 40.88 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BSY does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of BSY may justify a higher PE ratio.
BSY's earnings are expected to grow with 14.01% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.27
PEG (5Y)3.62
EPS Next 2Y12.77%
EPS Next 3Y14.01%
5. Dividend
5.1 Amount
BSY has a yearly dividend return of 0.55%, which is pretty low.
BSY's Dividend Yield is rather good when compared to the industry average which is at 30.34. BSY pays more dividend than 89.72% of the companies in the same industry.
With a Dividend Yield of 0.55, BSY pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
5.2 History
BSY has been paying a dividend for over 5 years, so it has already some track record.
BSY has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years4
5.3 Sustainability
30.98% of the earnings are spent on dividend by BSY. This is a low number and sustainable payout ratio.
DP30.98%
EPS Next 2Y12.77%
EPS Next 3Y14.01%
50.29
-0.42 (-0.83%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners45.02%
Inst Owner Change-0.08%
Ins Owners40.36%
Ins Owner Change-2.01%
Market Cap15.27B
Analysts76.84
Price Target60.57 (20.44%)
Short Float %5.6%
Short Ratio5.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
Yearly Dividend0.24
Dividend Growth(5Y)N/A
DP30.98%
Div Incr Years2
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.63%
Min EPS beat(2)11.45%
Max EPS beat(2)13.82%
EPS beat(4)2
Avg EPS beat(4)4.8%
Min EPS beat(4)-4.04%
Max EPS beat(4)13.82%
EPS beat(8)6
Avg EPS beat(8)11.84%
EPS beat(12)10
Avg EPS beat(12)12.54%
EPS beat(16)14
Avg EPS beat(16)14.49%
Revenue beat(2)1
Avg Revenue beat(2)-0.42%
Min Revenue beat(2)-0.85%
Max Revenue beat(2)0.02%
Revenue beat(4)1
Avg Revenue beat(4)-1.15%
Min Revenue beat(4)-2.61%
Max Revenue beat(4)0.02%
Revenue beat(8)3
Avg Revenue beat(8)-0.77%
Revenue beat(12)5
Avg Revenue beat(12)-0.29%
Revenue beat(16)8
Avg Revenue beat(16)0.07%
PT rev (1m)0%
PT rev (3m)13.73%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.25%
EPS NY rev (1m)-0.22%
EPS NY rev (3m)2.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.37%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.9 | ||
| Fwd PE | 36.96 | ||
| P/S | 10.76 | ||
| P/FCF | 35.2 | ||
| P/OCF | 34.07 | ||
| P/B | 13.14 | ||
| P/tB | N/A | ||
| EV/EBITDA | 40.88 |
EPS(TTM)1.12
EY2.23%
EPS(NY)1.36
Fwd EY2.71%
FCF(TTM)1.43
FCFY2.84%
OCF(TTM)1.48
OCFY2.94%
SpS4.68
BVpS3.83
TBVpS-4.77
PEG (NY)3.27
PEG (5Y)3.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.43% | ||
| ROE | 21.88% | ||
| ROCE | 13.19% | ||
| ROIC | 10.54% | ||
| ROICexc | 10.92% | ||
| ROICexgc | N/A | ||
| OM | 23.82% | ||
| PM (TTM) | 17.91% | ||
| GM | 81.18% | ||
| FCFM | 30.55% |
ROA(3y)7.42%
ROA(5y)7.4%
ROE(3y)30.01%
ROE(5y)29.96%
ROIC(3y)8%
ROIC(5y)10.54%
ROICexc(3y)8.22%
ROICexc(5y)11.91%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)10%
ROCE(5y)13.18%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y4.29%
ROICexc growth 5Y-15.93%
OM growth 3Y5.52%
OM growth 5Y3.69%
PM growth 3Y21.55%
PM growth 5Y4.39%
GM growth 3Y1.43%
GM growth 5Y0.13%
F-Score8
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 2.87 | ||
| Debt/EBITDA | 3.1 | ||
| Cap/Depr | 22.78% | ||
| Cap/Sales | 1.02% | ||
| Interest Coverage | 28.61 | ||
| Cash Conversion | 111.55% | ||
| Profit Quality | 170.63% | ||
| Current Ratio | 0.51 | ||
| Quick Ratio | 0.51 | ||
| Altman-Z | 4.63 |
F-Score8
WACC10.88%
ROIC/WACC0.97
Cap/Depr(3y)27.47%
Cap/Depr(5y)32.2%
Cap/Sales(3y)1.59%
Cap/Sales(5y)1.72%
Profit Quality(3y)148.6%
Profit Quality(5y)185.51%
High Growth Momentum
Growth
EPS 1Y (TTM)7.69%
EPS 3Y8.4%
EPS 5Y12.41%
EPS Q2Q%3.23%
EPS Next Y13.74%
EPS Next 2Y12.77%
EPS Next 3Y14.01%
EPS Next 5Y14.99%
Revenue 1Y (TTM)10.45%
Revenue growth 3Y11.93%
Revenue growth 5Y12.93%
Sales Q2Q%10.22%
Revenue Next Year10.02%
Revenue Next 2Y10.2%
Revenue Next 3Y10.29%
Revenue Next 5Y9.16%
EBIT growth 1Y15.23%
EBIT growth 3Y18.11%
EBIT growth 5Y17.09%
EBIT Next Year15.98%
EBIT Next 3Y15.8%
EBIT Next 5Y10.9%
FCF growth 1Y27.87%
FCF growth 3Y15.91%
FCF growth 5Y22.26%
OCF growth 1Y23.69%
OCF growth 3Y14.76%
OCF growth 5Y20.58%